Due to Putin’s brutal invasion of Ukraine, LEGO has become the most recent significant firm to entirely leave Russia.
The Danish toymaker declared today that it would halt all of its operations in the nation, terminate the employment of its staff members in Moscow, and sever its relationship with a business that runs 81 stores in Russia.
According to a company spokeswoman, given the ongoing significant disruption in the operational environment, they have decided to “indefinitely stop commercial operations in Russia.”
This includes parting ways with Inventive Retail Group, which “managed 81 outlets on the brand’s behalf,” and firing the majority of the Moscow-based team, the spokeswoman said.
Deliveries to Russia were previously stopped by the corporation in March as a result of the invasion of Ukraine.
A representative for Inventive Retail Group confirmed the cancellation of the deal with LEGO to AFP on Tuesday.
She continued, “Our business will continue to serve as a leader in the field of building and instructional toys.”
In order to get over restrictions put in place due to the crisis in Ukraine, Russia included LEGO toys to a list of commodities that might be imported without the consent of the intellectual property owner in early May.
Apple and Samsung smartphones, well-known automakers, video gaming consoles, and accessories for various industries were all included in the list released by the ministry of industry and trade.
In response to the invasion, a number of Western corporations have left Russia, including LEGO.
Many, including Google, Nike, and McDonald’s, temporarily suspended operations before ultimately leaving the nation.
Many Russians lost access to popular fast-food and clothing chains, both expensive and affordable.
As part of the economic isolation the West has imposed on Russia in response to the invasion, luxury companies like France’s Chanel and Louis Vuitton have announced they are ceasing operations there.
Zara’s parent company, the Spanish apparel retailer Inditex, ceased operations in Russia in March, liquidating its 502 stores and halting online sales.
As the effects of the sanctions start to be felt, Prada, Dior, Louis Vuitton, Gucci, and Fendi were among the luxury brands that cleared their shelves in the Russian capital’s upscale malls.
In response to western sanctions, American food and beverage goliaths like Coca-Cola, Pepsi, and Starbucks have suspended or shut down operations in Russia.
Companies from French automaker Renault to British energy goliaths Shell and BP have left Russia, hurting their profit lines as they try to offload their interests there.
KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet are all operated by Yum Brands, which has announced that it will stop investing in and building new restaurants in Russia and will instead donate any proceeds from those operations to charitable causes.
Nissan, Levi’s, Visa, and Mastercard are a few other significant US corporations that recently stated their desire to stop doing business in Russia.
All 850 of McDonald’s locations nationwide, including the well-known Pushkin Square site, which the company claims employs 62,000 people, were shut down in March.
After McDonald’s sold its franchises to a Russian investor in June, it was replaced by “Vkusno I Tochka.”
On June 12, the new establishment reopened with a revamped menu, new staff uniforms, and long lines of customers forming around the corner of Pushkin Square in the heart of Moscow.
But after a month, the organization is already having trouble meeting the simple needs that customers of McDonald’s would anticipate without issue.